PNG looking to build on trade

The National Business

By SHIRLEY MAULUDU
THE total value of Papua New Guinea exports to Indonesia through the border at Vanimo, East Sepik, last year was K9.1 million, says an Indonesian official.
Indonesian consul-general in Vanimo, Allen Simarmata, said in return Indonesian exports into PNG through this gateway only amounted to K166,000.
He said figures in 2020 were similar with PNG exports valued at K9.5 million with Indonesia’s exports at about K555,000.
Simarmata said 2019 saw a more balanced trade between the two sides with PNG exports valued at K15 million, while Indonesian exports totalled K8 million.
Looking to building on this relationship and use the access through the border post, International Trade and Investment Minister Richard Maru in September said the country would now shift its focus to Asia, including Indonesia.
Maru said Indonesia was a US$1.1 trillion (K3.78 trillion) economy.
“We are shifting to Asia and we will be putting in place a trade agreement with Indonesia,” he said while acknowledging the growing Indonesian economy.
“Indonesia’s economy is growing at five per cent per annum.
“In 2050, Indonesia will be a US$5 trillion (K17.2 trillion) economy,” he said.
“This is a huge potential for PNG to take advantage of.
“Therefore, one of my priorities is to conclude a free trade agreement with Indonesia during my term as minister for international trade and investment,” Maru said.
Meanwhile, Vanimo-Green MP Belden Namah last week said the Government needed to provide enabling indicators that would support the concept of a free trade zone in Vanimo.
He said this in response to recent comments by Maru, who said Vanimo was not ready for the free trade zone concept yet.
“Vanimo or any other parts of the country are not ready to be hosts of the special economic zone idea too.
“This is a government policy. The minister has to ensure that the enablers to ensure the free trade zone concept is realised, have to be established in the respective areas.
“I would like to assure the people that as long as I remain with the Government, I will ensure that the its plan to establish a free trade zone in Vanimo is realised.”
Maru recently said past governments had not prepared Vanimo for the initiative.
“Despite all the talk about a Vanimo free trade zone over the past 20 years, the provincial government and the national government have not prepared Vanimo,” he said.